Market conditions for NAND flash producers worsened in the first
quarter of 2008 as continued oversupply and a historical low demand
quarter was impacted by slowing consumer demand due to the U.S.
sub-prime mortgage crisis, according to DRAMeXchange. NAND Flash ASPs
fell approximately 35 percent in 1Q08 compared to 4Q07. Overall bit
shipment grew approximately 30 percent compared to 4Q07, according to
DRAMeXchange.

Number one NAND flash market leader Samsung saw its share slip slightly
in 1Q08 due to the steep ASP decline that was not offset enough by bit
growth and cost savings from its ramp of 51nm process technology.
Samsung exited the quarter with 39.6 percent of the market, down from
41 percent. Sales fell 18.7 percent q-on-q to $1.28 billion.

Due to the reduction in NAND production by Hynix
Semiconductor, the Korea-based memory producer saw its market share
fall to 17.5 percent in 1Q08, compared to 20.8 percent share in 4Q07.
Sales fell by 29.1 percent q-on-q to $569 million.

Both Intel
and Micron increased bit shipments q-on-q, but according to
DRAMeXchange, both experienced sales declines due to a greater fall in
ASPs. Micron and Intel 1Q08 sales were $248 million and $181 million
respectively with a market share of 7.7 percent and 5.6 percent each,
up slightly from 4Q07.

Revenue for STMicro in 1Q08 fell
slightly to $85 million; however, sales were buffered due to its mobile
phone supply focus. 1Q08 market share was 2.6 percent, up slightly
from 4Q07.

Renesas/PSC saw the biggest fall in sales (60
percent) due to Renesas’ reduction in production of AG-AND Flash in
1Q08. Their market share fell from 1.3 percent in 4Q07 to 0.6 percent
in 1Q08.